| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | Germany | Gfk Consumer Confidence Survey | January | -23.1 | -22.5 | -21.3 |
| 09:00 | Eurozone | Current account, adjusted, bln | October | 39 | 33.5 | 26.0 |
GBP traded mixed against other major currencies in the European session on Thursday as investors waited for the announcement of the policy update by the Bank of England.
The British central bank will announce its latest policy decision at 12:00 GMT. Expectations are for the BoE to keep its benchmark rate unchanged at 4.75% and signal gradual interest-rate decreases in 2025. In addition, the Bank’s policymakers are anticipated to adopt a cautious stance amid mounting inflation risks both domestically and abroad.
The BoE reduced its Bank Rate in August and November, with its governor Andrew Bailey hinting earlier this month that a 25-basis-point pace of rate decreases was likely to persist. However, markets have trimmed their BoE rate cut bets earlier this week after data showed stronger-than-predicted wage growth and persistently high services inflation. They now anticipate only two rate cuts next year. This implies that the BoE’s policy could continue to exert pressure on the UK’s economy already experiencing a slowdown.